Argus Research has recently upgraded Restaurant Brands International (NYSE: QSR) from “Hold” to “Buy,” setting a price target of $80. This upgrade underscores confidence in the company’s global growth prospects and its current undervalued stock price.
Rationale Behind the Upgrade
🌍 Global Expansion Potential – The company is expanding through master franchisees and joint ventures, including Popeye’s China and Tim Hortons China. These initiatives are expected to fuel strong international growth.
📈 Leadership with Proven Track Record – The appointment of Patrick Doyle, former CEO of Domino’s Pizza, as executive chairman brings valuable expertise. Doyle’s experience in driving digital sales and franchisee profitability is expected to enhance Restaurant Brands International’s performance.
💹 Attractive Valuation – Trading at 16.8 times projected 2025 earnings per share, the stock is seen as undervalued relative to industry peers, presenting a compelling opportunity for investors.
These factors contribute to a favorable outlook for Restaurant Brands International, making the upgraded rating well justified.
Dividend Fundamentals
💵 Dividend Yield – The company offers a forward dividend yield of approximately 3.75%, ranking among the top in its industry.
📆 Dividend Schedule – Dividends are paid quarterly, with the next ex-dividend date set for March 21, 2025, and a payment date of April 4, 2025.
📈 Dividend Growth – With a dividend growth rate of 5.83% over the past year and a decade-long history of increases, the company remains a solid choice for income-focused investors.
Restaurant Brands International maintains a commitment to delivering value to shareholders through reliable and growing dividend distributions.
Conclusion
Argus’s upgrade reflects renewed optimism in Restaurant Brands International’s global expansion strategy and leadership under Patrick Doyle. With a strong dividend track record and attractive valuation, the company presents a compelling opportunity for investors looking for both growth and income in the quick-service restaurant sector.